Savannah Energy Plc has announced its plan to terminate the previously approved off-market share buyback as it prepares to enter a relationship agreement with its largest shareholder, NIPCO Plc, which aims to significantly increase its stake in the company. The British independent energy firm said NIPCO intends to acquire additional existing ordinary shares through secondary market transactions, enhancing its presence in the midstream gas sector.
Following the termination of the buyback, NIPCO is expected to acquire 118,083,927 of the 143,565,582 shares that were part of the buyback agreement, potentially raising its ownership to around 25% of Savannah’s current issued share capital. The company also noted that NIPCO may acquire up to an additional 1.5% of issued shares through further secondary market purchases, which could increase its total holding to approximately 26.5%, though these additional acquisitions are not guaranteed.
The proposed relationship agreement is designed to protect Savannah and its minority shareholders while allowing the company to operate independently of NIPCO. Under the agreement, NIPCO will support board-recommended governance resolutions, have no board representation, refrain from hostile takeovers, and comply with orderly market disposal rules for future share sales. The agreement will remain effective as long as NIPCO and its affiliates collectively hold at least 12.5% of Savannah’s issued share capital.
Savannah’s board stated that terminating the buyback was guided by external professional advice and strategic considerations. The move preserves approximately £10.05 million in cash, enhancing the company’s financial flexibility while maintaining the ability to return capital to shareholders through on-market buybacks previously authorised at the November 28, 2025, general meeting.
